Refer to the information provided in Figure 26.3 below to answer the question(s) that follow.
Figure 26.3Refer to Figure 26.3. During the 1980s, many firms in the United States were not investing in new capital. This would have caused
A. the economy to move from Point C to Point B along AS1.
B. the economy to move from Point B to Point A along AS1.
C. the short-run aggregate supply curve to shift from AS1 to AS2.
D. the short-run aggregate supply curve to shift from AS1 to AS0.
Answer: C
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The adjustment of the ____________ is the rationing mechanism in market economies.
A. price B. competition C. government D. None of the choices are correct.
The run up in gasoline prices between 1999 and 2007
A. still had them much below their long-term inflation-adjusted average. B. put them about the same as their long-term inflation-adjusted average. C. still had them slightly below their long-term inflation-adjusted average. D. put them much above their long-term inflation-adjusted average.
Considering a put option, an increase in the strike price:
A. causes the intrinsic value of the option to increase if it is above zero. B. makes the option worthless. C. causes the intrinsic value of the option to decrease if it is above zero. D. causes the value of the option to decrease.
An increase in demand will induce entry by firms in the long run.
Answer the following statement true (T) or false (F)